CBZHL CEO maps new strategy after FMHL setback

STAFF WRITER

CBZ Holdings Limited (CBZHL), a publicly traded financial services provider,  is determined to pursue its ambitions of becoming a regional financial powerhouse, despite a major setback in its planned takeover of First Mutual Limited  Holdings Limited (FMHL).

The Competition and Tariff Commission (CTC) recently blocked CBZHL’s attempt to increase its stake in FMHL beyond 31.22%, by buying out minority shareholders, forcing the group to explore alternative paths to growth.

CBZHL had acquired 31.22% of FMHL from NSSA last year, raising its stake to 36%. The acquisition positioned CBZHL to launch a full takeover bid for FML, which was central to its vision of creating a financial behemoth capable of underwriting large projects across Zimbabwe and the region.

However, regulators halted the plan, instructing CBZHL to limit its holding to 31.22%.

Despite this, Group CEO Lawrence Nyazema remains optimistic, describing the roadblock as “just a bump.”

He emphasized the company’s continued commitment to expansion through other acquisitions and strategic partnerships, including opportunities outside Zimbabwe.

“We aimed to deepen diversification by integrating insurance, property, and investment businesses into our operations. Although the merger is no longer viable, we are exploring other ways to achieve these objectives,” Nyazema said.

“Our goal remains to grow our presence locally and internationally.”

Nyazema highlighted that CBZ retains significant influence in FMHL, alongside NSSA, the pension fund which also holds a 23.3% stake in CBZHL. While the FMHL takeover would have fast-tracked regional growth, CBZHL is now focusing on other avenues.

The group has already established an asset management office in Mauritius and a representative office in South Africa, both of which Nyazema describes as springboards for regional operations.

“You will see us diversifying beyond Zimbabwe and expanding beyond banking. There are numerous opportunities across the region independent of FMHL,” he said.

CBZ is also prioritizing domestic opportunities, such as tapping into Zimbabwe’s vast informal sector, which remains underbanked. Additionally, the bank is increasing investments in property to address rising demand for residential housing.

Nyazema pointed to Datvest, CBZ’s asset management subsidiary, as a key driver of the group’s expansion within Zimbabwe and abroad. By leveraging Datvest’s capabilities, CBZ plans to spearhead growth initiatives while diversifying its portfolio further.

“We remain committed to finding innovative solutions to scale our operations, both in Zimbabwe and internationally,” Nyazema concluded.

Despite the setback with FMHL, CBZ is pressing ahead with its broader strategy to transform into a regional financial leader, leveraging its robust local footprint and targeted international ventures.